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re: Dave Ramsey Facebook Tip Of the Day

Posted on 10/20/22 at 8:35 pm to
Posted by thelawnwranglers
Member since Sep 2007
38824 posts
Posted on 10/20/22 at 8:35 pm to
quote:

The thinking...discipline...if can afford the note when it is owed, can also afford to invest it.



Going to try this

Interest rate so low you never buy one cash?
Posted by Turf Taint
New Orleans
Member since Jun 2021
6010 posts
Posted on 10/21/22 at 10:51 am to
quote:

Interest rate so low you never buy one cash?


We invest "the note" in Vanguard index mutual funds (4-7% return 3-5 years avg), factoring in ugly bear market we are currently in, so can be higher. Therefore, prefer to use auto financing's no/low interest money.

However, if auto financing interest rates rise, the positive spread between investment return (4-7%) and rising auto financing interest is eroded and may make paying cash more attractive.

Will be buying new care in next couple of years so will see.

Good luck!
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